Kelington Group Berhad has reported its financial results for the second quarter and the first half of 2024. For the quarter ended 30 June 2024, the company achieved a revenue of RM321.2 million, down from RM424.9 million in the same period last year. The decline in revenue was attributed to major projects in Singapore and Malaysia nearing completion.

Despite this, the Group's gross profit rose by 20.6% to RM55.5 million, leading to an improved gross profit margin of 17.3% compared to 10.8% the previous year. Net profit for the quarter increased by 39.9% year-on-year to RM26.7 million.

For the first half of 2024, Kelington reported a net profit of RM51.5 million on revenue of RM660.5 million, marking a 46.1% increase from RM35.3 million in the first half of 2023. The Ultra High Purity (UHP) division was the primary revenue contributor, generating RM427.6 million, or 65% of the total revenue. The Processing Engineering and General Contracting divisions contributed RM38.8 million and RM128.2 million, respectively. The Industrial Gases division saw a 33% rise in revenue to RM71.3 million due to increased demand for liquid carbon dioxide and other gases.

Chief Executive Officer Ir. Raymond Gan expressed confidence in the Group's growth trajectory, supported by a strong project pipeline and regional tenders. Kelington secured new contracts worth RM564 million in the first half of 2024, bringing the total outstanding order book to RM1.29 billion. The Group is well-positioned to benefit from the expanding global semiconductor industry, which is expected to see the launch of 103 new fabs by 2027.

As of 30 June 2024, Kelington's equity increased to RM396.4 million from RM332.6 million at the end of December 2023, driven by warrant exercises and consistent profits. The Group has proposed a second interim tax-exempt dividend of 2 sen per share, amounting to RM13.6 million, bringing the total dividend declared for the year to 4 sen per share, or RM27.0 million, representing a 52% payout of the net profit for the first half of the year. The Group's balance sheet remains robust, with a cash balance of RM334.1 million and total debt of RM197.7 million.